Conference call presentation / investor presentation - Full year and fourth quarter 2015 results (PDF)

ams
Full year + fourth quarter results 2015
Kirk Laney, CEO
Michael Wachsler-Markowitsch, CFO
Moritz Gmeiner, Head of IR
February 2016
© ams AG 2016
We are shaping the world with sensor solutions
We provide high
performance
analog solutions
to the most
challenging
applications
in sensors,
sensor
interfaces,
power
management, and
wireless.
© ams AG 2016
Page 2
ams at a glance
Our business
• Focus on high performance analog semiconductors
• Sensor solutions, sensor interfaces, power management, wireless
• Ultra-low power, highest accuracy, sensitivity and integration
• Best-in-class solutions for leading OEMs
By the numbers
• 500 analog engineers
• More than 30 years of design experience
• 17 design centers, 2 manufacturing sites
• 2,000+ employees worldwide
• 8,000+ customers
© ams AG 2016
Page 3
Our focus
High performance sensors and analog ICs
Target markets
Core expertise
Consumer & Communications
Automotive, Industrial, Medical
65% of revenues (FY 2015)
35% of revenues (FY 2015)
Sensor solutions and sensor interfaces
Power management
Wireless
© ams AG 2016
Page 4
2015 highlights
Light sensors again largest revenue contributor and key driver of 2015 growth
• Market leader in consumer, leading position in upcoming advanced light sensing technologies
Acquisition of image sensor specialist CMOSIS adds significant IP and growth potential
• Excellent sensor portfolio expansion: high-value industrial/medical business and strong innovation
Acquisition of CMOS environmental sensors opens major growth opportunities across markets
• Key portfolio expansion to drive integrated sensing for new growth applications in AIM and consumer
New U.S. wafer fab to support growth plans and drive cost and margin benefits from 2018
• Highly attractive rental model with State of NY for state-of-the-art capacity without capex burden
Good growth in Automotive, Industrial, Medical as sensors continue to proliferate
• Leading sensor solutions provider focused on Industry 4.0 and Internet of Awareness
Fully aligned for 2019 organic revenue goal of EUR 1bn
• Strong development and project pipeline in consumer and AIM
© ams AG 2016
Page 5
Light sensors
Worldwide leader in intelligent integrated light sensors
Sensor solutions
• Gesture - hand movement sensing near
device surface creates touchless interface
• RGB color ALS - full light spectrum/light
temperature analysis improves display quality
• Classic ALS - legacy monochromatic ambient
light sensing for simple display management
• Proximity (Prox) - skin proximity detection
to control display/touchscreen on-state
Gesture module in
multiple platforms,
first TSV shipments
Broad coverage of consumer electronics markets
• Smartphones, tablet PCs, mobile devices, HDTV, PCs/notebooks
New opportunities: Industrial lighting, new consumer applications
• Combination of LED driver and light sensing for building lighting
• New light sensor-based technologies to improve consumer devices
• True Color Sensing for advanced analysis of light environment
© ams AG 2016
Page 6
Acquisition of CMOSIS
Expansion of optical sensor portfolio with high-end CMOS image sensors
Leader in high-end CMOS imaging
• High-performance area and line scan
Multiple growth
CMOS sensors
opportunities in
• Leading position in global shutter technology
industrial and medical
for excellent high-speed performance
image sensing
• Low noise, global and rolling shutter, high
dynamic range, and high frame rate solutions
• Advanced applications in machine vision, medical,
broadcast, traffic, scientific and photographic imaging
• Locations in Belgium, Germany, Portugal, U.S.
NanEye <1mm2 camera modules for endoscopy-type medical applications
• Significantly higher picture quality and robustness for better diagnostics
Financial and transaction details
• Equity value of approx. EUR 220m, all-cash transaction
• Sound revenue base of close to EUR 60m in 2015 with strong margins
• Consolidated from December 2015 onwards
© ams AG 2016
Page 7
Emerging: Biosensors for personal devices
Highly integrated health and fitness solutions based on advanced optical sensing
Sensor innovation
• High quality heart rate measurement using
AS7000 first gen
photoplethysmography (PPG)
biosensor shipping,
• Low-power high performance integrated hardsecond gen launch
and software solution including optical filters
expected H1 2016
• Improved accuracy across situations
supports heart rate variability (HRV) applications
• Moving to red/IR illumination for higher value
biosensing
• Upcoming products expected to include reflective SpO2
and blood pressure
Benefits
• High integration including high performance optical sensor module
to drive next generation of health and fitness solutions
• Ideal for fitness bands worn constantly, at rest and when exercising
• Technology platform enabling future spectral sensing health
applications
© ams AG 2016
Page 8
Wireless solutions – NFC, RFID
NFC solutions for mobile transactions
(Boosted NFC)
NFC boost license
• High performance ALM antenna boost
agreement with
technology
major NCC vendor
• Highest NFC reliability for wearables,
smartphones, and mobile devices
• Applications in device NFC, small form
factors and readers
• License agreement with major NFC controller chip (NCC)
vendor to pursue high volume opportunities in coming years
RFID solutions for authentication
• Integrated one-chip UHF readers and RFID solutions
for lower cost RFID deployment
• Materials tracking and authentication, supply chain security
© ams AG 2016
Page 9
Audio: MEMS microphone ICs, ANC
MEMS microphone interface ICs
•
•
•
•
Market leader in dynamic market
Around 1.6bn units shipped in 2015
Leading position in low noise solutions
Strong customer partnership focused on
high value market segments
Lenovo using ANC
in smartphonebundled earphones
ANC (active noise cancellation)
•
•
•
•
High performance technology offering pure analog
noise reduction, no DSP required
Significant audio quality improvement
Very low power consumption, minimized footprint,
comprehensive roadmap for enhanced feature set
High volume opportunity in bundled earphones and similar devices
© ams AG 2016
Page 10
Industrial
Sensor solutions and sensor interfaces
Industrial automation, control, and sensing
• Motion control
• Industrial sensors including time-based sensors
• Drives and electrical motors
• Seismic sensor interfaces
2D and 3D position encoders
• Magnetic rotary and linear encoders
• Broad portfolio of integrated high performance Hall sensors
Building automation and security
• HVAC + Safety
• Sensor networking and bus systems
Environmental sensing
• Relative humidity, pressure and temperature CMOS sensors
© ams AG 2016
Page 11
Emerging: Cognitive industrial lighting
Smart lighting management integrates sensing and control to unlock energy savings
Sensor innovation
• Industry’s first integrated IoT-connected
chip-scale smart lighting managers
• Photopic sensors with nano-optic filters, high
efficiency LED drivers and wireless connectivity
• Ambient daylight sensing delivers constant
lux levels as amount of outside light varies
• Cost-effective sensing, control and connectivity
for luminaires and light engines
First products
launched;
building mid-term
volume opportunity
Benefits
• Significant energy savings potential from truly smart LED lighting
• Integrated system-level sensing and control for major reduction
in system cost
• Protocol-agnostic networked architecture for easy IoT connectivity
• Smart lighting sensor solutions bring convergent IoT sensor hubs
to smart buildings
© ams AG 2016
Page 12
Medical
Sensor solutions and sensor interfaces, power management, wireless
Medical imaging: Leader in lowest noise sensor solutions
• Computed tomography
• Digital X-ray
• Mammography
• Ultrasound
Personal health devices
• Heart rate monitors
• Diabetes management
Robotic surgical solutions
• Encoder-driven accuracy
© ams AG 2016
Page 13
Automotive
Sensor solutions and sensor interfaces, bus systems, power management
Position sensing
• Pedal and throttle position
• Transmission (clutch, gear shift)
• Steering wheel angle and torque
• Brushless motor control applications
LIDAR object
detection
supports upcoming
applications
Safety systems and ADAS
• Collision avoidance LIDAR systems (ADAS for object detection)
• ESP (Electronic Stability Program), data bus networks
Battery power management
• Battery management for conventional, hybrid, and electric vehicles
• High efficiency power management
Environmental sensing
• Air quality sensing
• Relative humidity and temperature sensing
© ams AG 2016
Page 14
Scalable manufacturing model
In-house capacity + manufacturing partnerships
Wafer manufacturing
• 200mm internal fab, Austria
(180-190k 200mm-wafer equiv. p.a.)
• CMOS + specialty analog down to 180nm
• External wafer sources: TSMC, UMC, GF
U.S. wafer fab
project on track,
expected ramp
early 2018
New wafer fab project in upstate New York, USA
• Renting new custom-built wafer fab from State of New York
• First buildout: 150k+ 200mm-wafer equiv. p.a., 130nm capable
• Start of construction H1 2016E, production ramp early 2018E
• No depreciation on fab
• Significantly lower per-wafer cost to drive margin benefits
Test and assembly
• In-house test in Austria and the Philippines
• End-to-end fully integrated supply chain
© ams AG 2016
Page 15
Global value chain
Headquarters
Design centers
Test center
Sales offices
•
•
•
17 design centers
Austria, Switzerland, Italy (2), Spain, Slovenia, Germany (3), Belgium,
Netherlands, Portugal, Finland, USA (2), India, Japan
2015: 4 design centers added from acquisitions (CMOS environmental sensors
+ CMOSIS) - Netherlands, Belgium, Germany, Portugal
High volume test center
Philippines
© ams AG 2016
Page 16
Financial results
© ams AG 2016
Key figures
EURm
(IAS)
Total revenues
2015
2014
Q4 2015
Q4 2014
623.1
+ 34.2%
464.4
147.2
+ 5.9%
139.0
Gross margin
(excl. acquisition-related amortization)
(incl. acquisition-related amortization)
56%
54%
56%
55%
57%
55%
56%
54%
Result from
operations
(EBIT)
(excl. acquisition-related amortization)
(incl. acquisition-related amortization)
162.2
147.3
116.1
105.4
33.7
29.3
34.5
31.4
148.7
+ 52.4%
97.5
30.6
+ 6.5%
28.8
2.30 / 2.21
2.16 / 2.08
1.74 / 1.67
1.43 / 1.37
0.48 / 0.46
0.44 / 0.43
0.51 / 0.48
0.42 / 0.40
Net result
EPS (basic/diluted)
CHF
EUR
© ams AG 2016
Page 18
FINANCIAL RESULTS
P&L
BALANCE SHEET
CASH FLOW
© ams AG 2016
Page 19
Total revenues
EURm
750
160
600
450
623.1
464.4
120
139.0
147.2
+ 5.9%
+ 34.2%
80
300
40
150
0
0
2014
•
•
2015
Q4 2014
Q4 2015
Strong full year revenue growth, Q4 2015 excluding CMOSIS above high end of expectations
On constant currency basis, revenues 2015 up 19% year-on-year, Q4 2015 down 3% year-on-year
© ams AG 2016
Page 20
Revenue distribution
% of revenues
Total revenues by market 2015
Total revenues by region 2014/2015
100%
75%
50%
57%
65%
Asia/Pacific
Industry,
Medical,
Automotive
(- 1 pp)
35%
4%
65%
4%
Americas
25%
39%
32%
Consumer &
Communications
(+ 1 pp)
Europe
(EMEA)
0%
2014
•
•
2015
Further expansion of Asia/Pacific business in 2015 partly due to billing locations
Consumer & Communications share of revenues almost unchanged from 2014
© ams AG 2016
Page 21
Total backlog
EURm
Consignment stock
agreements approx. EUR15-17m
140
120
131.3
- 9.0%
100
119.4
80
60
40
20
0
Dec 31 2014
•
•
Dec 31 2015
Backlog comparison reflects current softer consumer demand environment
Total backlog + designated consignment stock agreements = total customer-committed revenue pipeline
© ams AG 2016
Page 22
Gross profit / gross profit margin
EURm, % of revenues, gross profit including acquisition-related amortization
400
56.4%
300
56.1%
100
339.2
75
56.6%
56.0%
75.6
253.2
+ 34.0%
200
50
100
25
80.4
+ 6.4%
0
0
2014
2015
Q4 2014
Q4 2015
Gross profit margin excluding acquisition-related amortization
•
•
Gross profit margin performance due to product mix, full utilization, scale effects, production efficiency
Gross profit margin including acquisition-related amortization 2015: 54.4%, Q4 2015: 54.6%
© ams AG 2016
Page 23
R&D expenses
EURm, % of revenues
120
17.3%
16.6%
40
21.5%
16.6%
107.8
30
90
77.0
+ 39.9%
60
20
30
10
0
23.1
+ 37.1%
0
2014
•
•
31.6
2015
Q4 2014
Q4 2015
R&D investments continuing on high level to support multi-year pipeline
Q4 2015 includes base effect from acquisitions
© ams AG 2016
Page 24
SG&A expenses
EURm, % of revenues
120
16.5%
40
15.0%
15.7%
90
93.5
76.9
+ 21.6%
60
20
30
21.8
- 1.8%
21.4
10
0
0
2014
•
•
14.6%
30
2015
Q4 2014
Q4 2015
SG&A expenses include selective sales/marketing investments, profit-sharing, commissions
Successful SG&A expense management through 2015
© ams AG 2016
Page 25
Result from operations (EBIT)
EURm, % of revenues, EBIT excluding acquisition-related amortization
200
26.0%
25.0%
160
45
24.8%
30
34.5
162.2
120
116.1
22.9%
- 2.2%
33.7
+ 39.7%
80
15
40
0
0
2014
2015
Q4 2014
Q4 2015
EBIT margin excluding acquisition-related amortization
•
•
Strong EBIT growth driven by high revenue growth in H1 2015 and good performance in H2 2015
EBIT margin (EBIT) incl. acquisition-related amortization 2015 23.6% (147.3), Q4 2015 19.9% (29.3)
© ams AG 2016
Page 26
Net financial result
EURm
4
12
11.7
3
9
3.0
+ 1034.1%
2
6
+ 433.7%
3
1
0
0
-0.9
-1.2
-1
-3
2014
•
•
2015
Q4 2014
Q4 2015
2015 financial result swing mainly driven by exchange rate volatility and revaluation effects
Q4 2015 includes additional financing for CMOSIS acquisition
© ams AG 2016
Page 27
Tax expense
EURm, tax rate: % of result before tax (PBT)
15
5
6.3%
6.5%
12
4
10.3
9
6
3
5.2%
2
6.6
3
1
0
0
2014
5.6%
2015
1.7
1.7
Q4 2014
Q4 2015
Tax rate
•
•
Low tax expense 2015 due to historic tax losses and international tax structures
Cash tax rate expected to increase gradually
© ams AG 2016
Page 28
Net income / earnings per share
EURm, earnings per share (EPS) in CHF and EUR (basic/diluted)
160
CHF 1.74 / 1.67
EUR 1.43 / 1.37
CHF 2.30 / 2.21
EUR 2.16 / 2.08
40
CHF 0.51 / 0.48
EUR 0.42 / 0.40
CHF 0.48 / 0.46
EUR 0.44 / 0.43
148.7
30
120
28.8
+ 52.4%
80
97.5
20
40
10
0
0
2014
•
•
30.6
+ 6.5%
2015
Q4 2014
Q4 2015
2015 net income growth reflects strong increase in operating profitability
EPS base (basic/diluted) 2015 68,873,498/71,604,447 shares, Q4 2015 69,026,942/71,598,007 shares
© ams AG 2016
Page 29
FINANCIAL RESULTS
P&L
BALANCE SHEET
CASH FLOW
© ams AG 2016
Page 30
Working capital
EURm
Working capital at year-end
120
2014
88.7
79.8
58.6
79.0
59.9
51.0
109.9
18%
87.9
19%
109.9
100
80
2015
87.9
Trade receivables
+ Inventories
- Trade liabilities
+25.0%
60
40
Working capital
in % of revenues
20
0
Dec 31 2014
•
•
Dec 31 2015
Very successful working capital management against strong revenue growth
Increase in inventories due to expansion of production capacity (higher WIP)
© ams AG 2016
Page 31
Net cash, cash and short term investments
EURm, % of total liabilities
Net cash, equity ratio
100
58%
Cash and short-term investments
240
56%
50
229.6
180
45.0
0
- 37.3%
120
143.9
-50
- 391.8%
-100
60
-131.3
-150
0
Dec 31 2014
Dec 31 2015
Dec 31 2014
Dec 31 2015
Equity ratio
•
•
Net debt position created in Q4 2015 due to CMOSIS acquisition
Decrease in cash and cash equivalents towards year-end due to CMOSIS acquisition
© ams AG 2016
Page 32
FINANCIAL RESULTS
P&L
BALANCE SHEET
CASH FLOW
© ams AG 2016
Page 33
Cash flow from operations
EURm, % of revenues
180
27.1%
24.5%
150
120
152.9
126.0
60
29.9%
50
40
+ 21.0%
31.5%
44.0
43.8
+ 0.1%
90
30
60
20
30
10
0
0
2014
2015
Q4 2014
Q4 2015
Cash flow as % of revenues
•
•
Very strong cash generation driven by business growth
Continued high level of cash flow to revenues
© ams AG 2016
Page 34
Capital expenditures
EURm, % of revenues - Acquisition of intangibles, property, plant and equipment
100
15.1%
12.9%
80
80.1
60
70.1
11.1%
20
9.0%
15
+ 14.2%
16.3
12.6
+ 29.7%
10
40
5
20
0
0
2014
2015
Q4 2014
Q4 2015
Capital expenditures as % of revenues
•
•
2015 capital expenditures driven by completion of in-house wafer capacity and test expansion
Q4 2015 capital expenditures include specialty equipment for next generation light sensors
© ams AG 2016
Page 35
Dividend policy and proposal
Dividend policy
• Distribution of 25% of net earnings
Dividend proposal for 2015
• EUR 0.51 per share outstanding (2014: EUR 0.33)
Dividend timetable
• AGM 2 June 2016
• Payment date 10 June 2016
© ams AG 2016
Page 36
Company highlights and outlook
© ams AG 2016
Outlook
Mid-term goal
2016 outlook
Q1 2016 outlook
EUR 1 billion in organic revenues in 2019
•
•
•
Another growth year expected for ams
Continued R&D investments
Technology roadmaps, project pipeline and customer engagements
build growth expectations for coming years to 2019
•
Expected revenue of EUR 131-138 million given softer end market
demand, particularly in smartphone market
Expected gross margin on comparable level to Q4 2015
Expected operating (EBIT) margin of 18-20% given revenue outlook and
continued R&D investments (excluding acquisition-based amortization)
•
•
© ams AG 2016
Page 38
Company highlights
Analog makes sense
© ams AG 2016
Page 39
ams
Shaping the world with sensor solutions
© ams AG 2016
Profit and loss statement
EURm
(IAS)
2015
2014
Q4 2015
Q4 2014
Total revenues
• Products
• Foundry
623.1
579.0
44.1
464.4
425.0
39.4
147.2
136.2
11.0
139.0
129.7
9.3
Gross profit
• Gross margin incl. amortization charge
339.2
54.4%
253.2
54.5%
80.4
54.6%
75.6
54.4%
Research and development
Selling, general and administrative
Other operating income/expenses
- 107.8
- 93.5
9.3
- 77.0
- 76.9
6.0
- 31.6
- 21.4
1.9
- 23.1
- 21.8
0.7
Result from operations (EBIT)
• EBIT margin incl. amortization charge
147.3
23.6%
105.4
22.7%
29.3
19.9%
31.4
22.6%
11.7
- 1.2
3.0
-0.9
Result before tax
Income tax result
158.9
- 10.3
104.1
- 6.6
32.3
- 1.7
30.5
- 1.7
Net result
148.7
97.5
30.6
28.8
2.30 / 2.21
2.16 / 2.08
1.74 / 1.67
1.43 / 1.37
0.48 / 0.46
0.44 / 0.43
0.51 / 0.48
0.42 / 0.40
Net financing costs
EPS (basic/diluted)
CHF1)
EUR
1) Earnings per share in CHF were converted using the average currency exchange rate for the respective periods
© ams AG 2016
Page 41
Balance sheet
EURm
Dec 31,
2015
Dec 31,
2014
Liabilities and equity
Dec 31,
2015
Cash and short term invest.
Trade receivables
Inventories
Other current assets
143.9
88.7
79.8
28.7
229.6
79.0
59.9
18.3
Interest-bearing debt
Trade liabilities
Tax liabilities
Provisions
Other liabilities
75.0
58.6
46.3
34.7
31.0
38.5
51.0
34.4
30.3
42.1
Total current assets
341.0
386.7
Total current liabilities
245.6
196.3
Fixed assets
Intangible assets
Investments
Deferred tax asset
Other non-current assets
256.6
582.0
1.9
34.8
7.0
204.1
315.7
6.5
34.1
7.7
Interest-bearing debt
Employee benefits
Provisions
Deferred tax liabilities
Other liabilities
200.2
32.4
0.0
57.9
6.0
146.1
27.0
0.0
20.8
8.9
Total non-current assets
882.3
568.2
Total non-current
liabilities
Shareholders’ equity
296.6
202.9
681.2
555.8
1,223.4
955.0
Assets (IAS)
Total assets
1,223.4
955.0
Total liabil. and equity
Dec 31,
2014
© ams AG 2016
Page 42
Cash flow statement
EURm
(IAS)
2015
2014
Q4 2015
Q4 2014
Income before tax
Depreciation
158.9
47.9
104.1
37.3
32.3
12.9
30.5
10.6
Cash flow from operations
152.9
126.0
44.0
43.8
Capital expenditures
- 80.1
- 70.1
- 16.3
- 12.6
Cash flow from investing activities
- 287.2
- 108.9
- 211.9
- 32.2
Proceeds from borrowings
Repayment of borrowings
Dividends paid
220.3
- 149.6
- 22.8
125.3
- 0.8
- 14.1
155.2
- 44.9
0
116.2
-0.4
0
24.4
99.1
103.0
113.4
-109.9
116.1
- 64.9
125.0
103.6
203.7
103.6
203.7
Cash flow from financing activities
Change in cash and cash equivalents
Cash and cash equivalents at end of period
© ams AG 2016
Page 43
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